PACA Trust Enforcement
Effective Collection Actions for Produce Suppliers
As one of the first to practice in the area of PACA law, ILGANAYEV LAW FIRM, PLLC has built a reputation for effectively resolving the unique problems that arise for producers and distributors of fresh fruit and vegetables when their customers do not pay, including PACA trust enforcement cases. Our lawyers have effectively served as lead counsel in eight out of the top 10 largest insolvencies in the history of PACA trust enforcement. We have handled more than 1,000 cases and have recovered in excess of $100 million for our clients.
Collection Actions in Federal Courts and Bankruptcy Courts
Under the PACA trust provisions, buyers of produce are required to maintain their inventory and the receivables from the sale of produce as a fund from which to make payment to produce suppliers. If the buyer fails to pay, the seller can seek payment from these trust assets.
PACA trust enforcement lawsuits have four steps: First, freeze the buyer’s assets to prevent dissipation of assets subject to the PACA trust. Second, liquidate and obtain whatever produce-related assets the buyer possesses. Third, recover any PACA trust assets the buyer transferred to its bank or other parties. Fourth, seek to have the buyer’s owners pay any shortfall from their personal assets. Lawsuits to enforce the PACA trust will be in the U.S. District Court, or if the buyer files for bankruptcy protection, in the U.S. Bankruptcy Court.
Our Goal: The Largest Recovery in the Least Amount of Time
We understand that our clients want to recover as much as possible, expending the least amount of time and money in the process. With boundless creativity and extensive knowledge of this unique area of the law, we have proven our ability to accomplish that goal time and time again, which is why the clients we represent tend to be return clients.